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CHAPTER 1
Negotiation: The Mind and Heart
MULTIPLE-CHOICE QUESTIONS
1. Negotiation is
A. a contest of wills between opposing parties
B. an interpersonal decision-making process necessary whenever we cannot achieve our
objectives single-handedly
C. any buyer-seller transaction in which a good or service is exchanged
D. the process of compromise so as to avoid conflict and reach agreement
2. Along with the dynamic nature of business, interdependence, globalization, and information
technology, what is the fifth key reason for the importance of negotiation skills?
A. profit, meaning that people seek to maximize their earnings
B. antagonism, meaning that people are increasingly irritated by others
C. Economic forces, meaning that people need to know how to operate in uncertain
environments
D. alternatives, meaning that people are not very creative unless they have to be to find a way
out
3. The interdependence within organizations implies that people need to know how to
A. integrate their interests and work together
B. have similar incentive structures
C. be experts in competitive environments
D. develop different norms of communication
4. Most negotiators
A. continually improve their performance
B. realize that they are in perfect agreement
C. leave money on the table
D. reach win-win outcomes
5. Lose-lose negotiation occurs when negotiators
A. make too-large concessions
B. fail to recognize and exploit opportunities for mutual gain
C. reject terms offered by the counterparty
D. feel obligated to reach agreement
Principles of Negotiation
Chapter One Questions Due Week OneTotal Points Possible.15
CHAPTER 1
Negotiation: The Mind and Heart
6. When a negotiator rejects a proposal that is demonstrably better than any other option available this is
called
A. the agreement bias
B. the winners curse
C. walking away from the table or hubris
D. settling for too little
7. According to Nobel Laureate Herb Simon, satisficing is
A. helping other people
B. the synonym of optimizing
C. settling for less than could have
D. setting high aspirations
8. All of the following are myths that negotiators often hold, except:
A. whatever is good for one party must be bad for the counterparty
B. negotiator needs to be either tough or soft
C. good negotiators are born
D. good negotiators do not rely on intuition
9. Negotiation is a mixed-motive enterprise, such that parties
A. manage both economic and psychological dimensions
B. have incentives to cooperate as well as compete
C. use both deliberate thought and intuition
D. balance rewards and costs
10. Being a successful negotiator depends on
A. outsmarting the counterparty
B. the counterpartys lack of preparedness
C. experiential learning, feedback, and learning new skills
D. always letting the other party tip their hand first
Principles of Negotiation
Chapter One Questions Due Week OneTotal Points Possible.15
CHAPTER 1
Negotiation: The Mind and Heart